There are no shortage of banks in the Cayman Islands, in fact the island may be more well known for their banks than their beautiful beaches. Having said that however, it still does not mean that getting a mortgage in the Cayman Islands is easy; quite the contrary. Even harder is getting a mortgage in a timely manner. If you need a home loan quickly, a private mortgage through Carib Capital is the way to go!
Qualifying for a Private Mortgage in Grand Cayman
Qualifying for a private mortgage in Grand Cayman is quick and easy; if you have the equity, we have the loan. Private lenders look primarily at the property and the amount of equity you will have in it to determine whether they are interested in funding the mortgage. Generally 50% down payment (or equity if refinancing) is required from the borrower.
With regards to the property, lenders are only interested in properties in the tourist areas. Areas which attract a lot of expats looking for long term rentals are also usually acceptable. The key here is marketability, if the property were to go into foreclosure, how quickly could the lender sell it to get their money out. It really is as simple as that.
Generally our private lenders in the Cayman Islands will only consider Grand Cayman, again due to the higher marketability of the properties.
Private Financing Versus Bank Mortgages in the Cayman Islands
First off, if all things were equal, there is no question one of our conventional mortgages in Cayman Islands would be the way to go. Unfortunately, all things are not equal when dealing with the banks. The process can be very slow, qualification can be difficult, and the service you receive is not what you may be used to at home. Rates are better on our bank mortgages, as are the terms, loan to values and fees. Private mortgages do have their place however, here are just a few of the advantages:
- quick and easy qualification
- loans can close in less than a month, versus several months
- qualification is not an issue
- payments can be interest only or amortized
- We can often use equity in another property to assist your purchase
Private mortgages in the Cayman Islands will not be for everyone, however they fill an important niche in the property financing space. Call us today to see just how easy it is to get private financing for a property in Grand Cayman.
